Raydium is an automated market maker (AMM) and decentralized exchange (DEX) built on the Solana blockchain. While most AMM DEX liquidity is isolated from other platforms, Raydium uses the liquidity of its capital pool to place orders on Serum DEX's central limit order book. Raydium's liquidity provider (LP) can obtain order flow and liquidity from Serum ecosystem, and vice versa. Through the Raydium platform, users can trade using order books or AMM, participate in liquidity mining, or participate in token sales and receive collateral rewards by mortgating RAY tokens.

It aims to collaborate with other DeFi and AMM communities to centralize liquidity and reduce Gas costs.

While DeFi has a huge opportunity, it is greatly limited by outdated blockchains. DeFi transaction costs are high In a very short period of time we have seen Gas fees jump to levels that completely wipe out potential gains. Slow trading exacerbated the situation, as customers bid up gas prices and failed deals multiplied losses. As interacting with DeFi becomes very expensive, we once again see the average user being left behind. The nature of the automated market maker (AMM) on Ethereum means that liquidity is fragmented and pools on one protocol are isolated from pools on other protocols. Without any central order book aggregation across pools, AMM is highly competitive for liquidity and users do not see the benefits of liquidity held on other platforms. The same is true for sharding based blockchains, such as eth2 and Polkadot. Limited functionality Due to slow transaction speeds and prohibitively high gas costs, many trading features that are considered standard on centralized exchanges, such as limit orders, are difficult to implement effectively on a decentralized Ethereum exchange (DEX).

Raydium, an AMM protocol built on Solana's blockchain, attempts to address the inability to access a central order book and to use placing features such as limit orders. Raydium's order book function is implemented primarily on Serum, and the project provides on-chain liquidity to Serum DEX's central limited-price order book, meaning that Raydium gives access to order flow and liquidity across the Serum ecosystem. In other words, Raydium's liquidity comes both from its own liquidity pool and from the Serum orders shared by all Serum users.

The Raydium main interface has four functional modules: Trading, Swap, Pool and Farm. Among them, Trading is the order book Trading page, which supports users to use limit order, market price and other functions to trade, but there is no price K-chart at present. Swap stands for AMM transactions. The page is very similar to other AMM projects and users can use tokens to automatically match transactions. Pool refers to liquid capital Pool. Users can select trading pairs to add liquidity and obtain LP. Users can pledge LP on Farm page and get RAY token reward. The current annualized APY is between 400 and 500%.

RAY is the platform's native functional token, which is used for liquidity mining incentive, mortgage, new project start-up qualification and participation in future governance.

Raydium currently uses a constant function K = Y*X. This equation has a special property that it is stateless, given any two tokens without any information about their relative prices or values, it can provide traders with "unlimited" liquidity. Raydium uses this equation and prices the orders in the order book according to the Fibonacci sequence, offering up to 20 orders at various prices with points as small as 20 BPS between them. This is an optimized solution that ADAPTS swap orders to a single Solana transaction. In the future, it is expected that other liquidity provision models will be adopted to take advantage of the predictor and increase liquidity usage.

Faster and cheaper: We leverage the efficiency of Solana's blockchain to achieve faster transaction orders and gas charges than Ethereum at a fraction of the cost. Central Order Book for Full ecological Mobility: Raydium(RAY Coins) provides on-chain liquidity to Serum DEX's central limited-price order book, which means that Raydium allows access to order flows and liquidity throughout the Serum ecosystem. Trading interface: For traders who want to be able to view TradingView charts, set limit orders and better control trading.

Raydium charges a fee of 0.25% for each transaction on the platform, of which 0.22% is re-deposited into the working capital pool as a reward to the working capital providers and 0.03% is sent to the pledge pool as a reward to RAY token holders.

Unlike other AMM platforms, Raydium can provide on-chain liquidity to a central limited-price order book, which means that Raydium users and liquidity pools have access to order flows and liquidity across the Serum ecosystem, and vice versa. All of these capabilities are made possible by building on Solana, an extremely fast and efficient blockchain.

Raydium provides a transformational paradigm that enables projects and individuals to move quickly into the Solana and Serum ecosystems to take advantage of their unique advantages in speed and efficiency. In the crypto industry, faster transactions, very low transaction fees, and liquidity across the ecosystem are essential to attract DeFi participants, projects, and protocols.

Vulnerability to policy, volatile losses and code risk.